Fraudster Psychology 9

And, to complete the discussion, here is an example of "passive" fraud

http://www.businessknowhow.com/manage/employee-theft.htm

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

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----------à>>>>>>>>>>>>>>>gene tausk

 

Fraudster Psychology 8

OK - we have explored the difference between an "active" fraudster and a "passive" fraudster on the second side of the fraud triangle.  But - what is an active fraudster?  We have seen a few examples.

Here is a good example, however, of the "active" fraudster, courtesy of Wikipedia:

http://en.wikipedia.org/wiki/Romance_scam

We will talk about this more tomorrow.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

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----------à>>>>>>>>>>>>>>>gene tausk

 

Fraudster Psychology 7

Looking at the psychology of a fraudster, and  looking at the second prong of the fraud triangle, it is somewhat easy to see that if someone is a passive fraudster vs. an active fraudster, then there is a vast difference in the psychological makeup between the two.  Once again, the second prong of the fraud triangle is the opportunity for fraud.

     An active fraudster is always looking for the opportunity to commit a fraud.  He is not just "stumbling into" a fraud event - if he cannot find an opportunity, he will make one.

     A passive fraudster is a person who stumbles into an opportunity and decides to take advantage of it. 

      A person can protect oneself against passive fraud by instituting fraud controls talked about previously on this blog.  Active fraud is another matter.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Fraudster Psychology 6

OK - let's look at the second side of the fraud triangle - the chance to commit fraud.  This falls into one of two categories:

1.     An active chance to commit fraud
2.     A passive chance to commit fraud

      An active chance to commit fraud is when the fraudster is actively looking for the opportunity.  This is the case with con men, grifters, hustlers, phony stock traders, etc. 

     The passive chance to commit fraud is when the fraudster has the opportunity.  The best example of this is when the fraudster suddenly finds that an opportunity is open to him through little or no action on his own.  An example would be an accountant in a small business who discovers that because he is responsible for the finance reports and has no oversight, he can steal money and cover up his tracks.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Fraudster Psychology 5

Before we leave this one side of the fraud triangle, here is a humorous look at some of the lifestyles of people who commit white collar fraud.  Notice that they are not exactly living in poverty.

http://www.businesspundit.com/10-famous-white-collar-criminals/

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Fraudster Psychology 4

The key word here is that the fraudster's perceived need for something.  In the years I have been working as an attorney and defender of people accused of fraud, as well as an anti-fraud advisor to corporations and businesses, I have found that people accused of fraud or people who have committed fraud are in pursuit of the high-life. 

     I am not saying, of course, that fraud is exclusively the avenue of the super rich or people who are trying to pursue the "lifestyles of the rich and famous."  There are plenty of instances of what can be called "penny-ante fraud" where fraudsters use simple tricks or illusions to cheat their victims out of their wallets or a piece of jewelry. 

     However, the fraud cases we namely hear about or the fraud cases that make the news are people that are trying to acquire a lot of wealth.  Let's face it: fraud schemes are basically long-term theft schemes.  It's not a simple stick-up for a wallet.  Fraudsters are generally out for a long-term gain. 

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Fraudster Psychology 3

OK - let's start breaking down the fraud triangle.  As we examined last time, the first element in the triangle is:

"Rationalization is one part of the fraud triangle, an essential tool in understanding fraud. We will discuss this next time.  But, for now: the factors, which comprise the three points of the so-called fraud triangle, are:

1. A perceived pressure facing the person"

     "A perceived pressure facing the person" relates to the pressure that causes the fraudster to commit the fraud in the first place.  Since when we are discussing fraud we are usually discussing stealing money, obviously the pressure is usually financial.  The fraudster believes that he is under some kind of financial pressure and therefore needs money.

     However, as many fraud investigators have discovered, often these perceived financial pressures are not the critical financial pressures of which a normal person thinks.  We are usually not talking about the fraudster's need for basic necessities (food, a place to live, clothes, etc.), but rather the fraudster usually feels he "needs" luxury goods.  Many fraudsters fit the pattern of needing goods for the high life (expensive cars and jewelery, high value homes, exotic vacations, etc.), and this is the "pressure" such people often find themselves in.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk